Gold price is bouncing towards $1,220. The medium-term trend remains bearish as the price is below $1,233 and below the Ichimoku cloud resistance. I believe it is more probable to see a push towards $1,220 and a downward reversal from that level. Critical support is at $1,200.
Black line = resistance
Red line = support
Gold price is making higher highs and higher lows in the short term. The price is moving higher towards the Ichimoku cloud and the trend line resistance. I expect to see a rejection at that level and a downward reversal. If, however, the resistance at $1,220-$1,230 is broken, I could not rule out a stronger upward move towards $1,300.
Red line = support
Gold price is below the tenkan-sen and the kijun-sen. As I mentioned yesterday, we could see a bounce towards the kijun-sen at $1,220 as a test of this bearish trend. As long as the price is below the red line tenkan-sen I remain bearish.
The material has been provided by InstaForex Company - www.instaforex.com
